A notification from the central bank, The Reserve Bank of India,
has asked all banks and financial institutions to furnish
a suspicious transaction report to the Financial Intelligence
Unit-India within seven days of such a transaction.
The RBI norms on suspicious transactions come in the wake
of Union Bank of India being pulled up by tax and finance
ministry authorities in connection with
large cash transactions of nearly Rs 1,000 crore at its branches
by Balaji Bullion. The Balaji Group’s Balaji Bullion and
Balaji Universal Trade have been named as front
organisations used by former Jharkhand chief minister
Madhu Koda and his aides to deposit money allegedly made from scams.
“The report must be furnished within seven days
of arriving at a conclusion that a transaction, including
attempted transaction, whether or not made in cash, or
a series of transaction integrally connected are of suspicious
nature,” RBI said.
The RBI notification reiterates the government’s
amendment to the Prevention of Money Laundering
(Amendment) Act, 2009 (21 of 2009),
The RBI said it is the institution’s responsibility
to ensure that its branches and franchises
conform to these norms. Non-compliance will
attract penal provisions of the acts concerned, RBI said.
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